Koss (NASDAQ:KOSS) and LGI Homes (NASDAQ:LGIH) Head-To-Head Survey

LGI Homes (NASDAQ:LGIH) and Koss (NASDAQ:KOSS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Volatility and Risk

LGI Homes has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Koss has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.

Valuation & Earnings

This table compares LGI Homes and Koss”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LGI Homes	$1.71 billion	0.62	$72.55 million	$3.05	14.96
Koss	$13.02 million	2.29	-$390,000.00	($0.09)	-34.94

LGI Homes has higher revenue and earnings than Koss. Koss is trading at a lower price-to-earnings ratio than LGI Homes, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LGI Homes and Koss’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LGI Homes	4.05%	3.75%	2.02%
Koss	-7.22%	-2.90%	-2.39%

Analyst Ratings

This is a summary of recent ratings and target prices for LGI Homes and Koss, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LGI Homes	2	1	2	0	2.00
Koss	1	0	0	0	1.00

LGI Homes currently has a consensus target price of $68.00, indicating a potential upside of 49.07%. Given LGI Homes’ stronger consensus rating and higher possible upside, research analysts clearly believe LGI Homes is more favorable than Koss.

Institutional & Insider Ownership

84.9% of LGI Homes shares are held by institutional investors. Comparatively, 6.2% of Koss shares are held by institutional investors. 12.6% of LGI Homes shares are held by insiders. Comparatively, 44.1% of Koss shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

LGI Homes beats Koss on 12 of the 14 factors compared between the two stocks.

About LGI Homes

LGI Homes, Inc. designs, constructs, and sells homes. It offers entry-level homes, such as attached and detached homes, and active adult homes under the LGI Homes brand name; and luxury series homes under the Terrata Homes brand name. The company also engages in the wholesale business, which include building and selling homes to large institutions looking to acquire single-family rental properties. It serves customers in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia, Pennsylvania, Maryland, and Utah. LGI Homes, Inc. was founded in 2003 and is headquartered in The Woodlands, Texas.

About Koss

Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.